LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 18, 1999 TO: Honorable Gary Walker, Chair, House Committee on Land & Resource Management FROM: John Keel, Director, Legislative Budget Board IN RE: SB 396 by Moncrief (relating to authorizing the conveyance of certain state property located in Howard and Tarrant counties), Committee Report 2nd House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB396, Committee Report 2nd House, Substituted: negative impact * * of $(2,100,000) through the biennium ending August 31, 2001. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(2,100,000) * * 2001 0 * * 2002 0 * * 2003 0 * * 2004 0 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2000 $(2,100,000) * * 2001 0 * * 2002 0 * * 2003 0 * * 2004 0 * ***************************************************** Fiscal Analysis The bill would authorize the Texas Department of Mental Health and Mental Retardation (TDMHMR) to convey all of the state's interest, with the exception of oil, gas, and mineral rights, in two parcels of property to the local communities. The bill would authorize the TDMHMR to donate an administrative building and parking lot in Big Spring (Howard County) to the West Texas Centers for Mental Health and Mental Retardation (MHMR). These facilities were originally donated to the TDMHMR through a non-profit organization for use by the community services division of Big Spring State Hospital. The bill would also authorize the TDMHMR to donate the Tarrant County Psychiatric Hospital located in Fort Worth to Tarrant County MHMR Services. The Tarrant County Psychiatric Hospital was constructed through House Bill 338, Sixty-sixth Legislature, which provided $3 million for planning and construction of the facility. The facility is located on land donated by the Tarrant County Hospital District. Methodology The 1998 General Land Office Real Property Evaluation Report recommended the sale, lease, or transfer of these properties to community-based service providers. In 1997, the General Land Office appraised the facilities in Big Spring at $460,000. No significant impact is assumed based on the conveyance of the facilities in Big Spring since the facilities were donated to the state. The Tarrant County Psychiatric Hospital was appraised at $2.1 million. It is assumed that by donating the Tarrant County Psychiatric Hospital, which was constructed with state funds, the state would incur a loss of revenue of $2.1 million. The TDMHMR has not identified savings which could result from conveying these properties to local providers. Capital related expenditures such as maintenance and repairs are currently paid for by the local providers and would continue to be paid by the local providers upon conveyance of the properties. The primary source of revenue to the local providers is the TDMHMR. Therefore, it is assumed that the funds allocated to the community centers by the TDMHMR would continue to be used for facility maintenance and repairs as well as to provide client services. Local Government Impact The counties receiving the donated land and improvements benefit since the properties would be donated. The counties would also be able to continue to provide community-based mental health and mental retardation services while utilizing the property under their respective jurisdictions. It is assumed that the funds allocated to the local MHMR community centers would continue to be used for facility maintenance and repairs. Source Agencies: 655 Texas Department of Mental Health and Mental Retardation, 305 General Land Office and Veterans' Land Board LBB Staff: JK, DE, MG